Refinancing: Which Program is for You?

The number of refinance options available to borrowers is truly breathtaking. Contact us at 754-202-4376 and we will work with you to qualify you for the best refinance loan for your financial needs. There are some general questions to ask yourself as you review your options.

Lowering Your Payments

Are getting better mortgage payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate might be the best way to bring down your monthly payments.

Refinancing to Cash Out

Is your refinance goal primarily to "cash out" some home equity? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you need to apply for a loan higher than the remaining balance on your current mortgage loan.In this case, you will want to qualify for a loan for a higher number than the balance remaining on your present mortgage. You might not increase your mortgage payemnt, though, if you've had your existing loan for a while, and/or your interest rate is high.

Consolidating Your Debt

Perhaps you want to cash out some equity (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.

Paying it off Sooner

Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? If this is your goal, your refinance can change you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity faster, although your monthly payments will usually be more than they were. However, if you've had your existing 30-year mortgage for a long time and the loan balance is somewhat low, you could be do this without increasing your monthly payment — you could even be able to save! To help you determine your options and the many benefits in refinancing, please contact us at 754-202-4376. We are here for you.

Curious about refinancing? Call us: 754-202-4376.

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